Employee Cost: Arizona vs New Hampshire (2026)

Side-by-side comparison of employer costs, payroll taxes, SUTA rates, and workers' comp.

At a $60,000 salary

Arizona saves $230/employee/year

$65,362 in Arizona vs $65,592 in New Hampshire

Arizona

$65,362

1.09x salary

New Hampshire

$65,592

1.09x salary

Cost Breakdown Comparison

Based on $60,000 annual salary

Cost Component AZ NH Diff
Base Salary $60,000 $60,000
Social Security (6.2%) $3,720 $3,720
Medicare (1.45%) $870 $870
FUTA (0.6%) $42 $42
SUTA (State Unemployment) $160 $210 -$50
Workers' Compensation $570 $750 -$180
Total Employer Cost $65,362 $65,592 -$230

Tax Rate Comparison

Rate Arizona New Hampshire
SUTA Rate Range 0.05% – 5.6% 0.1% – 7.0%
SUTA Typical Rate 2.0% 1.5%
SUTA Wage Base $8,000 $14,000
Workers' Comp Rate 0.95% 1.25%
State Income Tax Yes No

What This Means for Employers

For a business hiring at a $60,000 salary, choosing Arizona over New Hampshire saves $230 per employee per year in employer-side payroll costs alone. For a team of 10, that's $2,300 annually.

The biggest difference comes from workers' compensation rates — Arizona charges 0.95% vs New Hampshire's 1.25%. Note that federal taxes (Social Security, Medicare, FUTA) are identical in both states.

These numbers reflect employer-side costs only and don't include benefits, overhead, or the employee's own tax burden. Use the interactive Employee Cost Calculator to model different salary levels and benefits packages.

Cost Comparison at Different Salary Levels

How the gap changes from $30K to $150K

Salary AZ Total NH Total Difference
$30,000 $32,782 $32,922 -$140
$40,000 $43,642 $43,812 -$170
$50,000 $54,502 $54,702 -$200
$60,000 $65,362 $65,592 -$230
$75,000 $81,652 $81,927 -$275
$100,000 $108,802 $109,152 -$350
$125,000 $135,952 $136,377 -$425
$150,000 $163,102 $163,602 -$500

Click any amount to see the full cost breakdown for that salary and state. Amounts shown from the perspective of AZ.

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